http://www.abc.net.au/am/s335651.htm
Or you can listen to it at this link: http://www.abc.net.au/am/2001/07/26/20010726am01.asx
Costello defends globalisation
AM - Thursday, July 26, 2001 8:00
LINDA MOTTRAM: Federal Treasurer Peter Costello has made a spirited defence of the benefits of globalisation, criticising what he calls ‘ranting’ against the changes in international trade and investment. In a bid to sharpen the coalition’s economic vision in an election year, Mr Costello made a wide ranging speech in Sydney last night, saying that the poor would be better off in an open Australia. In contrast to the views of anti-globalisation protesters who’ve been marring meetings of world leaders in recent times.
Our report is from Emma Simkin.
EMMA SIMKIN: It’s these sorts of protests witnessed from Genoa to Melbourne, that’ve made the issue of globalisation, a headline story. And Federal Treasurer Peter Costello, addressing the Sydney Institute last night, described such actions as, pointless.
TREASURER PETER COSTELLO: Globalisation is not a value, it is a process. And ranting against globalisation is like ranting against the telephone. You can use the telephone for good or for ill. So too the wider process of which the telephone is part, it can be a force for good or a force for ill. And what is more, you will not reverse the process.
EMMA SIMKIN: Far from hurting poor people, Mr Costello said globalisation allows a country to become more prosperous. Australia he said, had historically relied on using the savings of others, to build the economy.
PETER COSTELLO: Now none of this is to say that all the consequences of being without blemish, nor to say that we should not try and direct this process and maximise our benefits in the future. But we should come at it from the right starting point. The country which is open to trade investment technological transfer is going to be more prosperous and a better place to live than one that is not.
EMMA SIMKIN: Part of the globalisation process has resulted in Australian companies gravitating to larger overseas markets to seek more capital. The most recent vehicle to pursue this aim has been the dual listed company. Australia’s CRA and Britain’s RTZ merged in 1995 to create Rio Tinto. BHP followed suit this year with its $57 million merger with the UK’s Billiton.
The latest Australian firm to list overseas, is building products maker, James Hardie. Such moves have to be expected in the globalised world, but Mr Costello wants to see corporate headquarters based in Australia, to maintain the skills of the workforce. The Treasurer also said the government wants more free trade arrangements with other countries.
PETER COSTELLO: We have to pursue those in my view, aggressively. We’re pursuing them in relation to Singapore, the Prime Minister will raise it when he goes to Washington, with President Bush. But that is the way, I believe, to get some economies of scale and to get some access to markets.
EMMA SIMKIN: As to the health of the economy. Peter Costello says low interest rates, a strong budget and our exchange rate should help us through.
PETER COSTELLO: The world is sneezing, but we’ve had a triple immunisation, you know, are we ready for this year’s variation of the world flu? Well I think so, and we are determined to make every post a winner.
LINDA MOTTRAM: Federal Treasurer Peter Costello speaking in Sydney last night. Well in that speech, Mr Costello also addressed the issue of sustaining a decent level of social services in Australia, without placing extra weight on direct taxes. Here’s what he had to say.
TREASURER PETER COSTELLO: Obviously the country wants a competitive taxation regime and a decent level of social services. It needs a taxation base to sustain it. To stay competitive, the weight must be kept off direct tax, income and company tax and the indirect tax base must carry the burden of funding social services. A narrow base indirect tax cannot do that. To re-weight the tax system out of indirect tax and by definition, into direct tax, is a reverse direction. No other developed country in the world is moving that way. It is a recipe for uncompetitiveness, and with the competitive challenge we face, we can’t afford errors.
LINDA MOTTRAM: Treasurer, Peter Costello.
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